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Resource Stock Roundup:Wednesday, May 27th, 2009

Doug Casey — Wed, 27 May 2009 19:51:20 +0000

The Canadian Markets continued to march higher with the Bank of Montreal posting better than expected earnings for the second quarter of 2009. For the tale of the tape, the TSX Exchange added 2.15%, while the TSX Gold Index gave back 0.4% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, tacked on 0.07% with the decliners beating out the advancers by a 440 to 398 margin on 171 million shares traded.

Shares of Gold Reserve (AMEX:GRZ) have stabilized after reports came in that Venezuela terminated Gold Reserve’s concession for the large Brisas project. Rumours are now that Rusoro, which launched a failed takeover bid for Gold Reserve last year, may now end up in partnership with the Venezuelan government on the property. Gold Reserve ended the day flat at C$0.65.

Rimfire Minerals and Geoinformatics Exploration are looking to wed. Geoinformatics is coming off a failed merger with Southwestern Resources. Under the Rimfire deal, Geoinformatics will acquire Rimfire on the basis of 2.6 of Geoinformatic shares for each Rimfire share. Rimfire lost C$0.02 to close at C$0.40, while Geoinformatics added C$0.055 at C$0.225.

Linear Gold went shopping and bought the Goldfields project in Saskatchewan from financially plagued GLR Resources. The roughly 600,000 ounce reserve of 10.9 million tonnes grading 1.7 grams gold per tonne will cost $5.0 million in cash and 727,273 Linear Gold shares, plus Linear with will reimburse GLR for deposits made in connection with the equipment contracts in the amounts of $3 million and C$1.2 million. Linear Gold closed up C$0.23 at C$1.44.

Denison Mines (AMEX:DNN) went to the market and inked a C$82 million bought deal financing priced at C$2.05 per share. That was well below market so the uranium producer closed down C$0.28 to C$2.11.

A stock to watch is Underworld Resources. After the bell, the junior reported the results from the first three holes from the 2009 drilling program from the Golden Saddle zone at the White Gold property. Highlights included 3.39 grams gold per tonne over 104 metres. Underworld ended the day up C$0.11 at C$1.05.

The interest in commodity stocks continues to be strong and that has pushed Canada’s big board well above the 10,000 point mark. We shall see what Wednesday trading has in store.

Source: Resource Stock Roundup:Wednesday, May 27th, 2009

Resource Stock Roundup:Friday, May 22nd, 2009

Doug Casey — Fri, 22 May 2009 19:30:21 +0000

The big board stocks took a well deserved rest but the junior stocks continued to motor forward during Thursday trading on the Canada Markets. For the tale of the tape, the TSX Exchange gave back 2.76%, while the TSX Gold Index rallied 1.4% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, tacked on 0.39% with the decliners edging out the advancers by a 386 to 379 margin on 169 million shares traded.
The on again, off again $22.5 million take over of Southwestern Resources by London-based Hochschild Mining PLC is finally set to close. Hochschild initially failed to complete the transaction over concerns about the sale of Southwestern’s former troubled Boka project in China but calmer heads prevailed. So the exchange bids good bye to Southwestern and its rather controversial history. Southwestern closed at C$0.49 and the take out price is C$0.50.

Cardero Resource (AMEX:CDY) cut in half its original $200 million price tag for the Pampa de Pongo iron deposit in Peru but still pockets a cool $100 million. The Nanjinzhao Group paid a $10 million deposit, along with the earlier $2 million paid. The balance of the purchase price of $88 million is now due on the earlier of ten days after necessary Chinese governmental approvals to proceed with the purchase are in hand and December 17, 2009. Cardero ended the day up C$0.26 at C$1.27.

Canada’s largest bourse is straddling the 10,000 point mark, while the junior board is threatening to break out above the 1,100 point mark thanks to a strong move in gold. We shall see what Friday trading has in store.

Source: Resource Stock Roundup:Friday, May 22nd, 2009

Resource Stock Roundup: Wednesday, March 11th, 2009

Doug Casey — Wed, 11 Mar 2009 17:04:40 +0000

The gold stocks took one on the chin as some optimistic news coming out of the financial sector helped buoy the broader markets during Tuesday’s session on the Canadian Markets. For the tale of the tape, the TSX Exchange surged 4.14%, while the TSX Gold Index lost 7.3% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, added 0.54% with the decliners beating out the advancers by a 378 to 307 margin on 109 million shares traded.

With Geoinformatics Exploration out of the merger talks, Southwestern Resources has inked a preliminary deal to be taken out by Hochschild Mining (LON:HOC) for C$0.50 per share in cash. Southwestern ended the day up C$0.205 at C$0.41.

In the wake of a failed merger with Lundin Mining (NYSE:LMC), HudBay Minerals’ Allen Palmiere has resigned as chief executive officer and as a director. Colin Benner has assumed the role on an interim basis. HudBay ended the day up C$0.19 at C$5.90.

Despite cutting 100 metres of 1.11 gram gold per tonne at its Livengood project in Alaska, International Tower Hill Mines followed the price of bullion lower. Shares in the company fell C$0.30 to close at C$2.65.

Despite the modest uptick, the junior board continues to look weak in the face of seasonally low trading volumes. We will see what Wednesday trading has in store.

Source: Resource Stock Roundup: Wednesday, March 11th, 2009

Resource Stock Roundup: Tuesday, March 10th, 2009

Doug Casey — Tue, 10 Mar 2009 17:36:26 +0000

A new trading week is underway, but it was the same old selling that occurred during Monday’s session on the Canadian Markets. For the tale of the tape, the TSX Exchange fell 0.32%, while the TSX Gold Index lost 2.4% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, gave back 1.80% with the decliners swamping the advancers by a 432 to 294 margin on 105 million shares traded.

WesternZagros Resources posted a fourth quarter loss of $6.7 million or $0.03 per share and that resulted in a C$0.275 fall to C$0.425.

Geoinformatics Exploration has elected to walk away from its marriage proposal to Southwestern Resources. No reason was given. Southwestern ended the day down C$0.025 at C$0.205, while Geoinformatics ended flat at C$0.165.

Pacific Ridge Exploration and partner Aurora Energy Resources cut 0.22% U308 at the Lucky 7 zone on the Baker Lake project in Canada’s north. Pacific Ridge ended the day unchanged at C$0.04 and Aurora closed at C$2.30 for a C$0.16 loss.

As we mentioned on Friday, the low trading volumes on the junior board typically means falling broader markets. All-in-all, the trading signals are not positive moving into the short term. We will see what Tuesday trading has in store.

Source: Resource Stock Roundup: Tuesday, March 10th, 2009

Resource Stock Roundup: Tuesday, February 24th, 2009

Doug Casey — Tue, 24 Feb 2009 19:39:40 +0000

There was no place to hide during Monday trading on the Canadian markets as the bears mauled the bulls. For the tale of the tape, the TSX Exchange plunged 3.80%, while the TSX Gold Index dropped 2.8% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, fell 1.56% with the decliners swamping the advancers by a 493 to 310 margin on 139 million shares traded.

Southwestern Resources and Geoinformatics Exploration are looking to merge in a deal that would see Geoinformatics get 0.6 of a Southwestern share for each Geoinformatics share held. Southwestern ended the session down C$0.015 at C$0.235, while Geoinformatics closed unchanged at C$0.18.

On the drill front, cash rich IMA Exploration (AMEX:IMR) tabled the results from the Island Copper project in British Columbia. Highlights included 238 metres running 0.61 gram gold and 0.08% copper. IMA ended the day down C$0.02 at C$0.30.

North American Tungsten added C$0.03 to close at C$0.175 after the company announced that a bankable feasibility study over its MacTung deposit in the Yukon generates an internal rate of return of 23.5% and has a pretax net present value at an 8% discount of $277 million.

Eldorado Gold (AMEX:EGO) is a company to watch, having its shares halted from trading at C$11.64 pending news. Financing or takeover?

Hold onto your hat because it looks like the next leg down has started and the bottom appears to be nowhere in sight. We will see what Tuesday trading has in store.

Source: Resource Stock Roundup: Tuesday, February 24th, 2009